In a series of transactions, Michael J. Arougheti, the Co-Founder, CEO, and President of Ares Management Corp (NYSE:ARES), has sold a significant portion of his holdings in the company. According to recent filings, Arougheti sold shares worth over $5.2 million, with prices ranging from $130.1 to $132.81.
The sales occurred on March 18 and 19, 2024, under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading. These transactions were carried out indirectly through Atticus Enterprises LLC, a vehicle controlled by Arougheti.
Arougheti's transactions included the sale of 7,601 shares at an average price of $130.14, 13,029 shares at $131.12, 1,348 shares at $131.77, 218 shares at $132.81 on March 18, and 1,542 shares at $130.10, 3,547 shares at $130.97, 11,579 shares at $132.05, and 800 shares at $132.71 on March 19. Following these sales, Arougheti still indirectly owns a substantial number of shares in Ares Management Corp.
While the exact reasons for Arougheti's stock sale are not disclosed, such transactions are common among corporate executives and are often part of their personal financial planning strategies.
Investors and market watchers frequently pay close attention to insider selling for insights into a company's financial health and the confidence level of its top executives. However, it's important to note that insider transactions can be motivated by a variety of personal financial considerations and do not always signal changes in company performance or outlook.
Ares Management Corp, a global alternative investment manager, operates across various asset classes, including credit, private equity, and real estate. Despite the recent sale by Arougheti, the company continues to manage significant assets and maintains a strong presence in the investment advisory sector.
InvestingPro Insights
As investors digest the news of Ares Management Corp's (NYSE:ARES) CEO Michael J. Arougheti's recent stock sales, it's essential to consider the company's current financial metrics and analysts' expectations. Ares Management boasts a robust market capitalization of $40.98 billion, reflecting its significant presence in the alternative investment management space. With a P/E ratio of 53.63 and an adjusted P/E ratio for the last twelve months as of Q4 2023 standing at 69.51, the company trades at a high earnings multiple. However, its PEG ratio for the same period is a low 0.31, indicating potential for growth relative to its earnings.
The company has also demonstrated a solid financial performance with revenue growth of 18.87% over the last twelve months as of Q4 2023. This growth is further underscored by a strong gross profit margin of 42.54%, showcasing the company's efficiency in managing its finances. Moreover, Ares Management has a commendable return on assets of 4.96% for the same period, indicating effective asset utilization.
An InvestingPro Tip worth noting is that Ares Management has raised its dividend for 4 consecutive years, signaling a commitment to returning value to shareholders. Additionally, the company is expected to see net income growth this year, which could further bolster investor confidence. For those looking to explore more insights, InvestingPro offers additional tips on Ares Management Corp. With the use of coupon code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of data, including 14 more InvestingPro Tips for Ares Management Corp at https://www.investing.com/pro/ARES.
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